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1. Suppose that the Director of Resource Allocation (DRA) has the following Rule #1: public funds should be used for any project that yields more

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1. Suppose that the Director of Resource Allocation (DRA) has the following Rule #1: public funds should be used for any project that yields more benefits than cost. Suppose further that the Director is approached about building a bridge across the Orcim River, and after commissioning a study, determines that the demand curve for crossings of the bridge is Q = 6000 - 1000P, where Q is the number of crossings per year and P is the price charged per crossing The study also reveals that it will cost $10,000 to build, a cost that reflects the true opportunity cost of all the resources necessary to build the bridge, and that, unavoidably, because of flooding that occurs on a regular basis each year, the bridge will last just one year. The DRA then commissions a study to figure out the maximum revenues that could be obtained from the bridge under the condition that every person crossing is charged the same price. Given the demand curve, that amount turns out to be $9000. The DRA therefore decides not to build the bridge. Is the DRA's decision Consistent or inconsistent with Rule #1? Why or why not

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